Charged Off Debt

[Loose Cannon]

Can a creditor, collection agency or debt buyer add interest or other charges to a debt after the debt is charged off?

[justbroke]

Absolutely! You have to remember that the term "charge-off" (or an account status of "charge-off") is solely an accounting requirement. The debt can still be collected and interest will certainly continue to accrue on a charged-off account.

The terms of just what they can add to the balance, must be enumerated in the Installment or Credit Agreement. For example, they can only attach legal fees, if the agreement states that they can, and that it's permissible under State law.

[karm43]

YES and it is most likely more.

[shark66]

Let them add ALL the interest and fees they feel like and then BK on them...

Good luck to us all.

[jacko]

Knock yourself out. If you want add another $20,000, okay with me...-)

Let them add ALL the interest and fees they feel like and then BK on them...

Good luck to us all.

[AngelinaCatHub]

Knock yourself out. If you want add another $20,000, okay with me...-)

I'll call and raise you $10,000. 'Hub

[bcohen]

Sure, the JDB's and CA's can add whatever charges they feel like. Of course, getting paid is another matter. My debts have grown from less than $20 k (when I quit paying in March of 2009) to more than $35 k today, with all the interest, fees, and penalties. Will I pay any of this? Of course not. The moment I get served with a lawsuit, I will file for Ch. 7, and the debts will disappear down the "bankruptcy toilet".

[DYLAN150]

bcohen: You have not made a payment since 2009 and have not been sued yet? Who knows, maybe you will never be sued. I stopped paying Citibank 4 or 5 months ago and am now being sued for 7K. Plus attorney fees and more.

[bcohen]

That would be nice. I owed Citibank about $12 k at the time I quit paying, which has ballooned to about $25 k today. The debt was charged off in November of 2009, and sold to a JDB in December of 2010. It is currently owned by Midland Credit Management. I am knocking on wood that I don't get sued, because filing for BK is expensive!

[treehugger1]

Amazing, chitibank is not known to sell debt. They sued me within six months of charge-off. However, because I have no non-exempt assets and I am under a permanent student loan garnishment, their legal counsel has never attempted to collect on the judgments. I guess that $70K of student loans showing paid under garnishment on my credit reports had them throw in the towel.

[bcohen]

Well, I know for a fact that the debt was sold, not assigned because:
1. The original credit card account, with history going back many years was deleted from my credit reports, and instead it shows as a new account opened in January of 2011 owed to Midland, and under account type it says "Factoring company account (debt buyer)".
2. I received a letter from Midland offering various settlement options ranging from 60% one-time settlement (of the inflated balance with fees and penalties of course) to 90% paid over a year. Of course this debt is more than 100% of my annual household income, so good luck with that.

Anyways, aside from hiring a law firm in the state where my parents live--which is far away from the state I now live--and calling their house a few times a week (which my parents ignore), they haven't done anything. The law firm has sent me a couple of threatening letters, and they hit my credit each month, but that's about it. I don't own ANY assets--not even a car--and I am now a full-time student. So there is zero money available to pay this, or ANY of my old debts.